Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?
Close
Close

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Back

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

  • 30th Nov 2021
  • 92

Buy Term Plan Now Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

If you really want to financially secure your family’s future, then a term insurance policy may be your best bet. A typical term insurance policy works by mitigating the risk of early demise of the breadwinner and works as an income replacement tool for the dependents of the family. Life can be unpredictable and if something were to happen that leads to your unfortunate demise then your family may face the brunt of financial burden. A term insurance plan is highly beneficial in this aspect.

But when you buy a term plan, you may note that many insurers or agents also try to sell you riders on top of the term insurance plan. These riders offer extra benefits at the expense of an added premium. One may wonder whether these add-ons and optional features are actually useful or should one just go for the vanilla term plan.

Let us decode whether these add-ons and riders are beneficial and whether you should take them in addition to your term plan. Given below are some common types of riders.

Accidental Death Benefit Rider

If the policy holder meets with their unfortunate demise by way of an accident, then an accident death benefit rider would entitle the beneficiary to an additional death benefit amount under accidental death over and above the original term insurance cover.

Critical Illness Rider

If, during the policy term, the policyholder is diagnosed with a critical illness, then this rider can give them additional coverage for the same. Critical illnesses can include heart attack, stroke, kidney failure etc.

Accident Disability Rider

If the policy holder is disabled due to an accident, then an accidental disability rider would provide an additional cover to them. This can depend on the terms of the policy since the disability may be partial, complete, permanent or temporary. Ensure you understand carefully since there can be some confusion regarding the terminology.

Premium Waiver Rider

If the policyholder meets with an accident and is disabled partially or completely, then according to the terms of the rider, they ‘are entitled to a total waiver of the remaining premium payments. During such trying circumstances a rider like this can really be a lifesaver since you can enjoy the benefit of the term policy without paying additional premiums.

Benefits of These Riders

Now that we know what benefits these riders can provide, are they really helpful? Looking at the benefits, no one can deny that these riders and add-ons may actually be useful. They provide an additional cover on top of your term plan so that if an unforeseen situation arises, you’ll be able to handle it.

Riders can be useful because:

- They can provide a much more comprehensive cover besides the vanilla term insurance.

- Riders are extremely affordable since these benefits can be availed with a small addition of premium.

- Add-ons offer flexibility since policyholders can customize these additional benefits according to their needs.

To conclude, we believe these add-ons and optional features do make a difference and in case you’re wondering whether to get them, we advise you consider your requirements and add riders as per your needs.

- A Consumer Education Initiative series by Kotak Life

Tags

Also read

    • 22nd Dec 2021
    • 69

    4 Things To Expect From Your Term Insurance Plan in India

    Term insurance is a pure protection plan, there are term insurance hidden facts that you can expect from your term insurance policy in India. Click to...

    Read more
  • Why Buy Term Insurance Plan With a High Cover?

    Term insurance with high coverage offers the best protection with assured sum and more flexibility. To know more about term policies, Visit now

    Read more
    • 26th Mar 2021
    • 641

    Key Differences Between Term Insurance, ULIPs, And Health Insurance

    Find out Key Differences Between Term Insurance, ULIPs, And Health Insurance here on this article. Visit Kotak Life to know more on life insurance

    Read more

Related Plans

  • Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more
  • Kotak Credit Term Group Plan

    Kotak Credit Term Group Plan

    Kotak Credit Term Group Plan provides life cover to a group of borrowers of credit institutions where the life assured is the borrower and the credit ...

    Know more
  • Kotak Ace Investment

    Kotak Ace Investment

    Kotak Ace Investment Plan is designed with the clear objective of helping you accumulate wealth and provide you adequate life cover.

    Know more